Port Moresby 12 April 2013. More than 85% of Papua New Guineans are excluded from formal financial services. Up until today, grassroots people have not had access to insurance as a formal mechanism to protect them from the many perils that threaten their livelihoods. Following extensive market research, Nationwide Microbank and Pacific MMI, supported by the Pacific Financial Inclusion Programme, have developed an innovative insurance product specifically developed and designed with the low‐income people in mind. MiLife is the first microinsurance product to be launched in PNG and the first mobile microinsurance scheme in the South Pacific. It protects families from the financial burdens following unexpected death and builds on the convenience of an award winning, safe and hassle–free mobile money scheme. The arrival of MiLife marks a milestone in market led, inclusive financial services in PNG.
MiLife is a term life or funeral cover that will cover the life of both the husband and wife for a duration of one year and provide a payout of K5,000 in the event of either insured’s death. The cost of the MiCash Mobile Bank Account together with Insurance premium is K55 (fifty five kina). Clients will have access to both a state of the art mobile banking account and insurance. Nationwide believes that a bundled MiCash Mobile Banking and MiLife Insurance product represents a major milestone in making financial inclusion a reality in PNG.
Formal risk protection for the low income people of PNG is an historic step and Nationwide Microbank is pushing into new territory. MiLife Insurance will be piloted in Lihir Island.
Access to affordable financial services plays a crucial role in the economic development and empowerment of people in PNG. The ability to save current income and have access to loans to invest in the future is of great importance. Adequate risk protection is crucial to protecting and building productive assets that can be used to create future income opportunities. Financial services gives people the opportunity to employ wealth wisely today; insurance can help people prepare for a brighter tomorrow.
MiLife has been developed with the assistance of the Pacific Financial Inclusion Program (PFIP) and Nationwide’s business partner Pacific MMI Insurance Limited. PFIP is a Pacific‐wide program that is helping to provide sustainable financial services to low income households. It is funded by the United Nations Capital Development Fund, AusAID, the European Union, and the United Nations Development Programme (UNDP).
Pacific MMI is a 100% PNG‐owned insurance company operating throughout Papua New Guinea and the Pacific Region. It is a registered general insurance company under the Insurance Act 1995, and a registered life insurance company under the Life Insurance Act 2000.
Nationwide Microbank was the 2012 PNG Institute of Directors Innovative Company of the Year. Further information on Nationwide microbank can be obtained by visiting their website at www.microbank.com.pg.